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Abstract

number of Canadian companies have been investing and operating in Colombia for
the past couple of decades despite the region's tumultuous and violent history. More
recently, the Colombian government, under the leadership of Presidents Alvaro
Uribe and Juan Manuel Santos, have taken great strides to improve the overall
security situation and liberalize the country's economic policies. The Harper
government took note of these improvements and now views Colombia as a
politically and economically stable emerging market in Latin America. After much
debate and controversy the Canada-Colombia Free Trade Agreement was brought in
to force on August 15, 2011. A number of factions took sides in support of or in
opposition to the Canada-Colombia Free Trade Agreement in response to the
sociopolitical, environmental and economic risks and opportunities that the
agreement and increased Canadian Foreign Direct Investment in Colombia pose for
both parties. In an attempt to mitigate some of these risks, both countries have set out specific ancillary agreements that deal with environmental, labour and human
rights standards, which were brought in to force along with the Free Trade
Agreement. Unfortunately, many vulnerable Colombian citizens, specific Canadian
and Colombian industries, and the Colombian environment are still exposed to great
risk as the ancillary agreements do little to specify how the intent of the agreements
will be implemented. This paper argues that a policy option moving forward is the
establishment of an overarching institution which would involve voluntary
membership from key Canadian companies operating in Colombia, Canadian and
Colombian government representatives, and progressive NGOs that specialize in
environmental, human rights and labour issues. To ensure comprehensiveness and
accountability the institutional framework of the organization could be based on the
International Finance Corporation's eight Performance Standards, which include:
Assessment and Management of Environmental and Social Risks and Impacts; Labor and Working Conditions; Resource Efficiency and Pollution Prevention; Community Health, Safety, and Security; Land Acquisition and Involuntary Resettlement; Biodiversity Conservation and Sustainable Management of Living Natural Resources; Indigenous Peoples; and Cultural Heritage. With this risk management framework in place much of the success and sustainability of the Canada-Colombia Free Trade Agreement and continued Canada Foreign Direct Investment in Colombia could be ensured. A highly successful Canadian engagement model in Colombia would bolster international reputation, creating opportunity for further trade in Latin American countries.